-T5//73 



UNITED STATES DEPARTMENT OF AGRICULTURE 
BULLETIN No. 950 



Contribution from the Forest Service 
WILLIAM B. GREELEY, Forester 



Washington, D. C. 



PROFESSIONAL PAPER 



June 15, 1921 



REGIONAL DEVELOPMENT OF 
PULPWOOD RESOURCES 



OF THE 

TONGASS NATIONAL FOREST 
ALASKA 

By 
y 

CLINTON G. SMITH, Forest Inspector 




Alaska — Tongass and Chagach National Forests. 

WASHINGTON 
GOVERNMENT PRINTING OFFICE 

1921 



v>~Vv-. cL » 



LIBRARY OF CONGRESS 

JUN3lWl 

DOCUMENTS wIV.alON 



. $u 



UNITED STATES DEPARTMENT OF AGRICULTURE 




S BULLETIN No. 950 



&Jy*$UL 



Contribution from the Forest Service 
WILLIAM B. GREELEY, Forester 




Washington, D. C. 



June 15, 1921 



REGIONAL DEVELOPMENT OF PULPWOOD RESOURCES 
OF THE TONGASS NATIONAL FOREST, ALASKA. 

By Clinton G. Smith, Forest Inspector. 



CONTENTS. 



Page 



Objects of this statement 

Demand for pulp and paper 

Advantages of regional development- 
Importance of Alaska as a source 

of paper supply 

Location of the region 

Communication and accessibility. 
Topographic and other surface 

features 

Climate of the region 

Timber and stand 

Quality of timber 

Suitability for pulp and paper 

Logging 

Labor . '_' 

Construction of improvements 

Operating materials and mill sup- 
plies 

Disposal of mill effluents 

Water supply 

Water power 



6 

7 

8 

9 

10 

11 

13 

14 

14 

15 
15 
16 



Water-power permits 

Developed water power in Alaska- 
Fuel 

Markets 

Taxes 

Freight rates 

Frocedure in Government sales 

Authority to sell timber 

Policy 

Stumpage prices and readjust- 
ments , 

Stumpage price readjustments in 

Canada 

Financial standing of purchasers. 

Amount of capital required 

Applications for timber and water 

power , 

Time required to secure contract 

References 

Maps and surveys 

Sample agreement 

Map of Tongass National Forest 



Page. 
18 
18 
19 
19 
20 
20 
22 
23 
23 

24 

26 
26 
27 

27 
28 
28 
28 
29 
40 



OBJECTS OF THIS STATEMENT. 

This statement has been prepared to aid those who wish informa- 
tion on the timber and other resources of the Tongass National 
Forest in Alaska, to indicate the capital and organization necessary 
for the development of Alaskan pulp and paper mills, to show what 
data on the timber resources of that region have been and are being 
collected by the Forest Service, and to outline the conditions of pur- 
chase of timber on the National Forests. 1 



1 Acknowledgment is made to the Forest Products Laboratory for technical features : 
particularly to a report by H. E. Surface, entitled " Conditions Existing for the Manu- 
facture of Pulp and Paper in Alaska," material from which has been freely used ; and 
also to the district forester at Portland, Oreg., for valuable assistance. 
29729° — 21 1 



/Wl-k^K 



2 BULLETIN 950, U. S. DEPARTMENT OF AGRICULTURE. 

DEMAND FOR PULP AND PAPER. 

The time seems t<> be ripe for the extensive exploitation of Alaskan 
pulpwood. The successful operation of pulp and paper mills in 

near-by British Columbia, which has practically similar timber and 
power resources and comparable transportation facilities, removes 
the speculative element from the proposed development. The de- 
mand for paper has increased to such an extent that it has become 
possible for well-organized and adequately financed companies to 
operate pulp and paper mills on an extensive scale, particularly for 
making newsprint. Ten years ago the United States produced its 
entire supply of newsprint. In 1919 two-thirds of it was imported. 
mostly from Canada: and Canadian supplies are not without limit. - 
All indications point to a continuance of the demand at prices which 
should make possible profitable operations in Alaska. 

New sources are imperatively required for the supply of raw 
pulpwood. This need has already brought mills to the Pacific coast. 
They were located, first in California, "Washington, and Oregon, and 
then in British Columbia. The same transition has taken place in 
the lumber industry, and the production of lumber in the Pacific 
Northwest is increasing steadily. The movement in the pulp in- 
dustry, however, is necessarily slower, because of the greater invest- 
ment called for per unit and the very hug*' requirement for power. 
Furthermore, the pulp industry demands an assured permanent sup- 
ply of raw material and a proper allocation of water power under 
stable tenure, both of which requisites are found in the Tongass 
National Forest in southeastern Alaska. It is the policy of the 
Forest Service to sell pulpwood from the National Forests with such 
provisions for future supply as will assure the permanence of the 
industry. 

ADVANTAGES OF REGIONAL DEVELOPMENT. 

There is room for a number of mills on the Tongass Forest. When 
these are in operation, together with the established mills of British 
Columbia, which are reported 3 to represent an investment of 
$42,000,000, they "ill constitute a producing region whose products 

will have a recognized standing in the world's markets. The develop- 
ment of this region will facilitate the procurement of sa K>^ contracts 
and needed capital, make it possible to attract both skilled and un- 
skilled labor, and. lastly, but by no means of least importance, en- 
able the industry to secure favorable conditions and rates for the 
transportation of its products. These are prime factor- in the -in- 
of .in operation of any magnitude, and are recognized as such. 

MM Startling I t>y Trunk I >. Ilarnjuni. In I ho 

Pulp and PaptI IflgUtM "f Cnnndn. .Inn. 1. 1930, reprints of which nrc :i\ mIImMc from 

thf pnblul 
• sc<- fitmtBMr latter of .1. .1. Johnson, Ptb 20, 1:'." 



DEVELOPMENT OF PULPWOOD RESOURCES. 3 

Well-known examples of regional localization of industry are steel 
production at Pittsburgh and Gary, the making of automobiles at 
Detroit, textile and other manufacturing in New England, and so on. 
The possibilities of regional development can scarcely be overem- 
phasized. 

Pioneer conditions of the region have been met and overcome by 
the successful establishment of mills in near-by British Columbia. 
After much expenditure of time and money, and in spite of some re- 
verses, a number of going concerns are manufacturing pulp and 
paper in British Columbia along the coast between Seattle and 
Prince Eupert. 

Some of the earlier projects on the Pacific coast were started be- 
fore the time was ripe for their success. The prices for products 
were too low to offset the costs involved in establishing a new in- 
dustry far removed from consuming centers and with consequent 
high transportation charges. The paper shortage has radically 
changed the situation. Market requirements necessitate an expansion 
of the industry and seem to preclude a return to the old-time price 
levels. 

IMPORTANCE OF ALASKA AS A SOURCE OF PAPER SUPPLY. 

Secretary of Agriculture Meredith recently said : 

Alaska is destined to become a second Norway. With her enormous forests 
of rapidly growing species suitable for pulp, her water power, and her tide- 
water shipment of manufactured products, Alaska will undoubtedly become 
one of the principal paper sources of the United States. A substantial develop- 
ment of the paper industry in this wonderful region, combined with the intelli- 
gent reforestation of pulp lands in the older regions, should settle forever the 
question of a paper shortage in the United States. 

Within the last 10 years, he points out, "the Forest Service has 
brought about the sale of 420,000,000 feet of saw timber in the 
National Forests of Alaska." 

The Department of Agriculture believes that the development of 
the forest and water-power resources of Alaska is a practicable 
means of increasing the supplies of newsprint available for the 
United States, and therefore of eventually lessening the paper 
shortage now so acute. The National Forests of Alaska probably 
contain 100.000,000 cords of timber suitable for the manufacture of 
newsprint and other grades of paper. Under careful management 
these Forests can produce 2.000,000 cords of pulpwood annually for 
all time, or enough to manufacture one-third of the pulp products 
now consumed in the United States. 

The Alaskan forests also contain the second chief essential of the 
paper-manufacturing industry — water power. While no accurate 
survey of water power has been made, known projects have a pos- 



4 BULLETIN MO, U. S. DEPARTMENT OF AGRICULTURE. 

sible development of over 100.000 horsepower: and the Forest Serv- 
ice estimates that a complete exploration of the National Forests in 
southern Alaska will disclose their potential horsepower to be not 
less than a quarter of a million. 

Scarcely any other part of the country offers a field for the up- 
building of a permanent pulp and paper industry equal to that 
afforded by Alaska. It is a virgin field because, in spite of its 
natural advantages and vast supplies of raw material, economic 
conditions had not. prior to 1919. become sufficiently favorable to 
attract capital. For years the Forest Service tried in vain to interest 
capital in the development of enterprises for paper production in 
Alaska. Had it succeeded these enterprises would now be in a very 
advantageous position. 

It may be said in passing that the purpose of the Forest Service 
looks beyond merely finding a market for Government timber in 
order that the timber may be cut and a new growth started in its 
place. The Forests are administered as public properties created to 
serve public needs. Alaska's first need is capital. It has not yet 
leached a point at which the upbuilding of the Territory can be 
effected merely by an influx of pioneers of the type that conquered 
the wilderness in our Western States. While development must 
be a gradual process governed by economic facts, large-scale oper- 
ations are essential. To the extent that conditions can be made 
favorable for such operations development will be hastened. 

Public ownership of the National Forests and their administra- 
tion in accordance with the general policy pursued by the Fore-t 
Service affords capital certain important advantages. The amount 
of the investment necessary is greatly reduced by the fact that the 
Service is in position to guarantee permanent supplies, on reasonable 
terms as to price, and made available as needed. In other words, the 
operator does not need to inyest heavily in raw material or assume 
the speculative risks involved when timber must be carried for a 
number of years with accumulating charges before manufacture. 
kgain, prospective operators do not have to negotiate with a number 
of different owners or spend time and money in building up an op- 
erating unit. It is the desire of the Government to facilitate the es- 
tablishment of mills, and the Forest Service is therefore glad to make 

available all the information that it can secure and to offer terms and 
conditions of sale that will interpose no unnecessary or unreasonable 
obstacles to development. 

The value to Alaska of a pulp and paper industry on the National 

Forests can scarcely be overstated. By creating a demand for Labor 

it will build up the population: by creating a market for farmers' 

crops it vvill stimulate agricultural development : and it will improve 
transportation facilities and benefit all kinds of business. The Ter 



DEVELOPMENT OE PULPWOOD RESOURCES. 5 

ritory has been losing population and retrograding commercially and 
industrially in the last few years, primarily because after the first 
cream of her mineral wealth had been skimmed general economic 
conditions were not favorable to immediate further progress. An 
alteration in these conditions now opens an opportunity to start the 
tide running the other way. 

Obviously, the building up of Alaska generally will work to the 
advantage of any business enterprise located there, since it will make 
for better living conditions, greater contentment and stability of 
labor, and superior facilities of many kinds. At the same time that 
the interests of Alaska will be advanced by establishment of a local 
paper and pulp industry, such an industry will itself participate in 
the benefits of local development. 

LOCATION OF THE REGION. 

The timber described in this report is situated along the coast and 
on the large islands of southeastern Alaska, on the Tongass National 
Forest. The region is about as far west as it is north of Seattle 
and takes the one hundred and fiftieth meridian time, which is one 
hour slower than Pacific coast time. The largest towns in southern 
Alaska are Juneau and Ketchikan. Ketchikan, which lies at the 
extreme southern end, is only 670 miles from Seattle and approxi- 
mately only one-third of the distance from Seattle to the well-known 
town of Dawson on the Yukon River, in the Klondike region. 
Ketchikan is only 60 hours by steamer from Seattle and is only 93 
miles from Prince Rupert, British Columbia, the terminus of the 
Grand Trunk Pacific, a transcontinental railroad. The scheduled 
time for passenger trains from eastern points is seven days. It is 
possible to ship freight by car ferry from Ketchikan to Prince 
Rupert, and thence by rail eastward to its destination. 

COMMUNICATION AND ACCESSIBILITY. 

Southeastern Alaska is favored with numerous deep-water harbors 
open the year round, and there is comparatively smooth water in the 
straits and passages. This region is advantageously located, with 
reference to shipments by rail and water, to the United States and 
water shipments to the Orient, South America, and Australasia. 

The distances by water and rail to important markets are : 



From — 


To— 


Distance. 






Statute 
miles. 
2, 658 






\New York 


3,566 




(Seattle 


932 


Sitka 




3,113 






1 New York 


4,021 






4,134 



BULLETIN 950, V. S. DEPARTMENT OF AGRICULTURE. 



From- 



To— 



Distance. 



Sitka 



San Francisco. 



San Francisco 

New York 

Honolulu 

Sidney 

Wellington 

New 'i ork (via Panama) 

New York (via Magellan Strait). 

Yokohama 

Shanghai 

Manila 

Honolulu 

Panama 

Valparaiso 



.Yau/ico' 
milts. 1 
I, M2 
6, 551 

13, 13.i 
4,536 

6,221 
2,091 
3,245 
5,135 



1 A nautical mile equals 1.15 statute miles. 

Regular mail service by boat to and from Alaska is maintained 
throughout the year. The region is served by a military cable to 
Seattle, available to the public. Wireless stations, both Govern- 
ment and private, are well distributed along the coast. 

During the last two weeks in April. L920, the West Coast Lumber- 
man reported that about 100 cargoes for Alaska were loaded at 
Portland. Most of these cargoes were destined for the canneries. 
Several steamship lines ply regularly from Alaska to the " outside.*' 
The Pacific Coast Steamship Co. operates four steamships. The 
Alaska Steamship Co. operates five passenger st eamship s and nine 
freight steamers. The Grand Trunk Pacific operates in the Alaskan 
service two steamers and the Canadian Pacific one. 4 The Union 
Steamship Co. operates 10 steamers to Alaskan ports, There are a 
number of other boats operating to Alaska, and at Ketchikan the 
number of clearances of vessels per year is in the neighborhood 
of 2,000. 

From the regular ports of call reached by coastwise steamers, 
fishing boats, and mail boats, the outlying regions arc reached only 
by special trips with gasoline boats. The type of boat used most 
successfully by the Forest Service is F> feet long, and should have 
a crew of two men: hut the Service does not have the fa cilities to 
take interested parties on Investigating trips for timber and power- 
site locations. Then' are. however, a limited Dumber of boats for 

hire at all the principal ports at rates depending on the demand for 
the service and the character of the trip. 

TOPOGRAPHIC AND OTHKR SURFACE FEATVRKS 

Burchard (U. S. ecological Survey Bulletin B92, L914, p. W), de- 
ribes the general topographic and surface features at follows: 
The mainland and Islands of si.utiiea-i.Tu Alaska arc generally monntalnoas, 
: ,t„i there is little lerei land .-ither a- upland area or along the -in. res along 

• Tin- M.-i-.-ii.-mt Marina Act of .linn- 15, 1020, aiakea certain loalrtctloaj hi"'" "..• trana 
i... rtnti..n ..r BMrchaodlM, and any <.m- IntSNated In Alaska vv..,,i,i a., wrtl to nualllariaa 
hlmaett with the provtalona "f OiIh a«-t. 



DEVELOPMENT OF PULPWOOD RESOURCES. 7 

much of the coast line the hills and mountains rise abruptly 6 and the dense 
forest growth, extending down to the level of high tide, overhangs the steep 
banks. The islands are separated by an intricate system of waterways and 
fiords, known locally as straits, canals, channels, passages, sounds, narrows, 
inlets, bays, coves, and arms, some of which reach far inland. Many of these 
waterways are very deep and can be safely navigated by the largest ocean 
steamers, but some are so shallow as to be navigable only at high tide by boats 
of moderate draft. The coast and entrances to harbors are rocky and in places 
the greatest care is necessary in order to avoid rocks that are barely submerged. 
The topography is so rough that only in favored localities or at great expense 
can wagon or tram roads be constructed. The waterways are, therefore, of 
great value in affording routes of communication between different portions of 
the region and between this region and the Pacific coast ports of the United 
States. Indeed, were it not for water transportation the mining and quarrying 
industries in southeastern Alaska could scarcely have been developed. 

The rock surface is in general thickly overgrown with small to medium-sized 
timber and dense underbrush and has a soil cover- of decayed wood, moss, and 
mold, from a few inches to 3 or 4 feet thick as a rule, but thicker in hollows 
and crevices in the rock. 

CLIMATE OF THE REGION. 

Accurate climatic data for the region, based on observations taken 
at all the larger towns, are available from the records of the Weather 
Bureau. It must be remembered that these data were taken near 
tidewater, and that the annual precipitation of a given catchment 
basin which includes country in the higher altitudes can not be as- 
sumed to be the same as at sea level. In this respect the data will 
be found lacking. 

The dense forests bordering the shore line of southeastern Alaska 
are the result of the moist, humid climate. The records show that 
the annual rainfall ranges between 80 and 130 inches. Three-quar- 
ters of the precipitation occurs from March to November. In the 
high altitudes the winter precipitation is largely in the form of snow, 
and in consequence the winter run-off is much less than that of the 
rainy season. 

There is a difference of only 2° in mean annual temperature be- 
tween Puget Sound and Sitka. The mean temperature for January 
is 33° and for August 56°, an annual range of only 23° at Sitka. At 
Juneau, on the mainland, there is less oceanic influence, and the mean 
annual temperature is lower, the difference being more marked in 
winter than in summer. The harbors of southeastern Alaska are ice- 
free the year round, and the water is warm enough to favor the 
marine teredo, which is very active in salt water in southeastern 
Alaska, so much so that piles designed to be permanent must be coated 
with protective covering of cement or otherwise protected. 

G Reaching a maximum elevation varying from 4,000 feet in the southern part to 7,000 
feet in the northern. 



8 BULLETIN 960, L. S. DEPARTMENT OF AGRICULTURE. 

Altitude has a profound effect on climate, and this is shown in tree 
growth. The limit of merchantable timber is found at about 2,500 
feet above sea level. 

Work in the open is possible at all times of the year, but logging 
operations are not profitable in the short days of winter. It is likely 
that a mill would rely on stored pulpwood for a three or four months' 
run. In Ketchikan it is said to be necessary to use artificial lights 
after 3 o'clock in the afternoon in December. It is stated that the 
low summer temperature would be of advantage in sulphite-mill 
practice. 

TIMBER AND STAND. 

The most widely distributed commercial tree on the Tongass Forest 
is western hemlock (T.sus/a heterophyUo). It is a rapidly growing 
tree, and is suitable for either mechanical or chemical pulp, either 
alone or in mixture with other species. It is conservatively estimated 
that it forms GO per cent of the merchantable stand. It is being ex- 
tensively used for pulp at a number of plants in British Columbia. 

Sitka spruce {Pwea sitchensh) forms about 20 per cent of the 
stand. It varies greatly in percentage of mixture, from pure stands 
of 10 acres or less to stands in which it is found only here and there. 
Spruce and hemlock form increasingly larger percentages of the 
stand of timber toward the north. 

Other species forming approximately '20 per cent of the stand are 
western red cedar (Thuja plicate) and yellow cypress [CkavMacy- 
jHiris nootkatensi*) with a little cottonwood, birch, lodgepole pine, 
and white fir. 

The stand of timber on the Tongass Forest IS roughly estimated at 
9,000 feet, hoard measure, per acre, and the timber forms a belt back 
from the coast that averages approximately 1 mile in width and 
varies from a minimum width of one-fourth mile or less to a maxi- 
mum of •"> miles. An average stand of 20,000 feet per acre of mer- 
chantable timber was found in a cruise of the Behm (anal Unit, and 
individual stands of L00,000 feet per acre have been found over small 
areas. The Behm Canal I'nit. as shown on the map. has a stand of 
approximately 1.000.0(10.00(1 feet, board measure, of which ss per 
cent is spruce and hemlock. Spruce is used locally for lumber, box 
shooks, and piling: cedar for lumber and shingles: and hemlock for 
lumber and piling. 

Practically all of the timber in southeastern Alaska is under the 
control of the Government and is within the boundaries of the 

National Forest, the exceptions being reservations an. I town sil 

The area of land in private ownership is -mall. 



Bui. 950, U. S. Dept. of Agriculture. 



Plate I. 



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Stand of Hemlock and Spruce on Revillagigedo Island, Tongass National 

Forest, Alaska. 

Western hemlock constitutes about 60 per cent and Sitka spruce about 20 per cent of the merchant- 
able timber in southeastern Alaska. 



Bui. 950. U. S. Dept. of Agriculture. 



Plate II. 




DEVELOPMENT OF PULPWOOD RESOURCES. 9 

QUALITY OF TIMBER. 

The spruce in the commercial sizes is generally sound and of 
good quality. The hemlock, however, is apt to he defective, the 
damage consisting of partial decay at the butt, " black knots." or 
fluted trunks. The latter defect is pronounced only in the butt 
logs of the smaller trees, the bark in the very worst cases being 
recessed almost to the center in three or four places around the 
circumference. The smaller and inferior trees of both species are 
apt to have numerous limbs extending near the ground. In general, 
hemlock is not the equal of the spruce for pulp making and for 
lumber, as well as for many other purposes, and its present stump- 
age price is therefore commonly about half that of spruce. 

All estimates in this report are based on stands from which wood 
" merchantable for pulp " may be taken. For either hemlock or 
spruce, decay in butt logs of " merchantable pulpwood " seldom ex- 
ceeds 15 to 20 per cent, and the decayed portion may be eliminated 
when the wood is prepared for pulp making; that is, when it is being 
split or " broken up " with saws. Even when timber is badly affected 
with " black knots," the knots may be completely removed at an 
additional cost for " preparing," over the ordinary cost, of about 
$1 per thousand for handwork; that is, chopping with an ax, as 
evidenced in actual practice. By using proper mechanical means 
this extra cost of preparing the wood can be reduced one-third to 
one-half. 

Fluted trunks may be used, since in preparing the wood for the 
'• barkers," pulpwood bolts over 12 inches in diameter must be "sized" 
or split anyhow. Therefore, in splitting, the pieces may as well be 
separated on the "flutings" as elsewhere. The standard rossing 
machines then can easily remove all of the bark without exce-siv t > 
waste of good wood. That " limbiness " is not a serious objection is 
evidenced by the fact that many eastern mills now use wood from 
the tops of trees to as small a top diameter as 3 inches. 

Cottonwood may be included in some of the Alaskan sales as a 
pulpwood, and it is locally considered to be suitable for no other 
use. The Alaskan cottonwood is of about the same character as 
cottonwood grown elsewhere. 

All spruce and hemlock now considered merchantable for saw 
timber would make a high grade of pulpwood so far as defects are 
concerned. The proportions of timber merchantable for saw tim- 
ber and of that merchantable for pulpwood but not for saw timber 
would, of course, vary in different stands, and this feature would be 
carefully studied in developing specific projects. 
29729°— 21 2 



10 BULLETIN [m, V. S. DEPARTMENT OF AGRICULTURE. 

SUITABILITY FOR PULP AND PAPER. 

So far as suitability of species for pulp making is concerned, it 
should he sufficient to point to the British Columbia and Pacific 
Northwest pulp mills now operating on Sitka spruce and western 
hemlock. At times the hemlock alone is used, and it is said to 
prove as satisfactory as in mixture with quick-cook sulphite fiber, 
as far as quality of product is concerned. In addition to newsprint, 
only a few grades of building and mill wrapping paper are made at 
the British Columbia plants; but hemlock-spruce sulphite fiber is 
shipped to outside mills for the production of bond, manila, tissue, 
pure-fiber printing, and other bigh-grade papers requiring a strong, 
tough, white fiber. 

Western hemlock and spruce are the standard mechanical and sul- 
phite pulpwoods for the United States mills in the Pacific North- 
west also, the hemlock being consumed in greater amounts than any 
other single species. In 1918, 145,583 cords of hemlock pulpwood 
and 35,385 cords of spruce was consumed in Washington, Oregon, 
and California. Of ground wood pulp the hemlock, mixed with 
spruce and cottonwood, amounts to 20 to 50 per cent of the total, and 
the yield for the mixed species is about 1,850 pounds of air-dry pulp 
per cord. Of pulp cooked by the sulphite process alone, the yield 
is about 1.050 pounds per cord. The spruce (75 per cent), mixed 
with black cottonwood (25 per cent), affords a yield per cord of 
about 950 to 1.000 pounds of bleached soda pulp suitable for the 
highest grades of book and writing papers made from wood. From 
these three woods the following papers are made: Manila, cartridge, 
express, bag, fiber wrappings, news, tissue, fruit wrap, toweling, 
sheathing, book, label, writing, and relate. I papers. 

The above facts show that the two principal species concerned are 
both commercially suitable for mechanical and sulphite pulps (in- 
cluding high-grade Mitscherlich fiber), and the papers that are 
usually made from them, as before specified. 

While the consensus of practical opinion is that the spruce is 
somewhat the better pulpwood of the two, the following condensed 
summaries of some Forest Service Bemioommercial tests" at the 

Forest Products Laboratory, at Madison. Wis., carried on for a 
period of 10 years, afford a good opportunity for a comparison of 

them. The slightly greater weight of the hemlock per unit volume 

of prepared wood would usually be offset in commercial practice by 

the greater loss in cleaning. Yields are air-dry weight per cord 

containing 100 cubic feet of solid wood. 



- s.-.- •• Paper," .im> 80, 1918 



DEVELOPMENT OF PULP WOOD RESOURCES. 11 

Sitka Spruce- 
Dry weight of wood per solid cubic foot, 24 pounds. 

Average fiber length, 3.5 mm. 

Sulphite pulp: Yield 1,080 pounds; easily bleached; easy pulped; excel- 
lent strength and color. Possible uses, similar to white spruce; is con- 
sidered the standard for sulphite pulpwood and is used for news, wrap- 
ping, book, and high-grade printings, etc. 

Sulphate pulp: Yield 1,150 pounds; easily pulped; excellent strength and 
color. Possible uses, similar to white spruce; highest grade of kraft 
paper and strong fiber board. 

Mechanical pulp: Yield 2,040 pounds; character, slightly grayish color. 
Possible uses, similar to white spruce; for practically every use where 
ground wood pulp is required. 
Western Hemlock — 

Dry weight of wood per solid cubic foot, 23 pounds. 

Average fiber length, 2.7 mm. 

Sulphite pulp: Yield 1.050 pounds; easily bleached; easily pulped; good 
strength, fair color. Possible uses, similar to white spruce ; is considered 
the standard for sulphite pulp wood and is used for news, wrapping, book, 
and high-grade printings, etc. 

Sulphate pulp : Yield 1,100 pounds ; character, good strong fiber. Possible 
uses, similar to white spruce; highest grade of kraft paper and strong 
fiber board. 

Mechanical pulp: Yield 2,160 pounds; character, good strength and fiber; 
grayish color. Possible uses, similar to white spruce; for practically 
every use where ground wood pulp is required. 

The Forest Service has little test data on black cottonwood, but 
from the resemblance this wood bears to other " poplars," and the 
results of its use in mixture by some of the western mills, it may be 
said with a fair degree of conservatism that this species will produce, 
with a medium yield per cord, a ground wood pulp of good white 
color, of short fiber, of little strength, soft, and free from pitch. It 
would serve as a filler for the finer grades of ground-wood papers 
when properly mixed with spruce ground w ood and the long-fibered 
sulphate pulp. 

There is every reason to believe that the Alaska cottonwood as a 
species would serve well as a source of soda pulp for high-grade 
book paper. The softness of the fiber would really be advantageous, 
and remnants of bark, knots, and fungous stain would be of no con- 
sequence in the soda process. 

LOGGING. 

The use of timber for commercial pulpwood in Alaska is just be- 
ginning. The 400,000,000 feet of timber sold and cut to date from 
the National Forests in Alaska has been made into products such as 
piling, sawlogs, and shingle bolts. The logging methods have been 
developed from "hand logging," in which the trees were felled so 



12 



BULLETIN 950, U. S. DEPARTMENT OF AGRICULTURE. 



that they would fall directly into the water or could be rolled in by 
hand, to steam-donkey Logging, the donkey being mounted on a raft 
and "beached" at high tide, yarding directly into the water. Later 
two donkeys have heen used, a yarder and a roader. In the water 
the logs are boomed and towed to the sawmills. 

The losing heretofore has heen of comparatively large or selected 
timber. Pulpwood cuts will have a larger yield per acre than those 
for other purposes, as smaller timber will be cut. It is doubtful if 
the present system of logging is the best and cheapest that can be de- 
vised for pulpwood logging on an extensive scale. An overhead 
system seems to promise one solution of the problem. In this sys- 
tem a number of small logs could be brought to the water with a 
'"choker." Gravity chutes might be profitably employed on the 
steeper slopes. To reach the material farther back, it might be 
necessary to put in logging railroads running along the contour. No 
two logging units would present the same problem: several methods 
of logging would likely be used on the same general operation. 

In 1918, $8.95 was the average cost for raw pulpwood at the mills 
in California. Oregon, and "Washington. It is believed that pulp- 
wood can be produced more cheaply in Alaska, as the greater part 
of the wood will be cut within less than a mile of the water's edge. 
Figures of *4 to $6 per cord would normally approximate average 
costs under present methods of logging. 

The following cost figures are from " British Columbia, a Com- 
plete Guide. '' Vancouver. British Columbia. 1919: 



Vi-.ir. 


Pulpwood. 
Cords. 


Average 

value 
per cord. 


Voir. 


Palp wood. 


Average 
value 


1911 


150 
35,087 
84,178 


$7.60 

5. :.i 

4.77 


1914 


W.013 
'.«i. S3S 


$5.33 


1912 


1915 




i'ii:i. 


1916 


■ 







The natural system of sheltered canals and waterways (see map. 
|>. I<i) and the proximity of mostof the timber to them affords a great 
advantage in lessening the expense of logging. Log rafts arc 1 now 

towed as far as 200 miles to sawmills. Towage to the mill will be 

relatively inexpensive, especially if the operator uses his own tugs. 

Il i- estimated that the cost will not exceed 1 cent a mile per cord. 
This factor greatly reduces the original investment in logging plant, 
as compared, for example, with railroad operations. It also makes 
the physical factors in logging practically constant throughout a 
long period, as contrasted with the increasing cost of typical log- 
ging operation- in (lie States, which must move farther and farther 

back into less accessible timber, with increasing cost of construction 
and operation a- the rougher and higher country is penetrated. 



DEVELOPMENT OF PULPWOOD RESOURCES. 13 

The timber would be thoroughly soaked when delivered at the 
mills, but this would be of no disadvantage for ground wood pulp 
making except that logs left too long in salt-water storage would 
accumulate barnacles which it would be necessary to remove in clean- 
ing the logs. In fresh-water storage these barnacles would doubt- 
less drop off. It is probable that at a number of mill sites fresh- 
water storage would be obtainable. Soaked wood, although less de- 
sirable than fairly dry wood for sulphite pulp making, offers no 
great difficulty in this respect. A large number of American sul- 
phite mills use wood coming directly from the water, and others 
have installed special chip driers. For making soda and sulphate 
pulp it is of much more importance that the wood be dry. 

LABOR. 

The local labor supply is adaptable to all kinds of work. Laborers 
are usually attracted from the woods to the canning industry, or 
to mining, or to the aquatic fur industry, depending on the wages 
paid and the conditions of employment. An assured supply of 
skilled labor would be available after a number of mills were estab- 
lished in the region, but there would, of course, always be competi- 
tion from the other industries named. 

It should be noted that there has been an exodus of white popula- 
tion from Alaska with the decline of the mining industry. It is esti- 
mated that not more than half of the 1910 population of 65,000 
remains. However, the tendency to emigrate was checked in 1919, for 
during that year more people entered Alaska than departed from the 
Territory. 

The Alaskan Engineering Commission, which is engaged in build- 
ing a railroad from Seward to Fairbanks, imports its labor and 
maintains a crew of 3,000 to 4,000 men. This railroad will be com- 
pleted in 1922, and competition for labor from this source will be 
eliminated. 

It is of interest to note that laborers in Alaska are accustomed to 
work on a piece basis rather than on a time basis, and this would 
probably influence the employment of labor for logging operations. 
It might be desirable to consider contracting the labor for the cut- 
ting and delivery of pulpwood. 

Many of the pulpwood operations in Alaska would not be located 
at or near towns already established. In order permanently to 
hold men in responsible positions under such circumstances, and 
to reduce the labor turnover to a minimum it would doubtless be 
necessary for the prospective operator to construct dwellings and 
to consider the extent to which he might provide such conveniences 
as stores and amusements to serve as inducements in securing and 



14 BULLETIN 950, U. S. DEPARTMENT OF AGRICULTURE. 

retaining the full crew of laborers which is necessary for profitable 
operation. Social conditions would be almost entirely in the hands 
of the operator, and he would be guided by the trend of the times 
in respect to investments which are designed to secure the stability 
and efficiency of labor. 

CONSTRUCTION OF IMPROVEMENTS. 

" Construction from the ground up " summarizes the require- 
ments to be met in Alaska, which is comparatively an undeveloped 
country. Following the acquisition of the timber and source of 
power, the mill site and town could then be advantageously located. 
It would be necessary to clear the site before construction could 
begin. A sawmill would no doubt be required, and the first Logging 
would be for the clearing of a mill and town site, ami the building 
of such neces-ary structures as wharves, storehouses, mills, dwell- 
ing houses, offices, machine shops, and stores. The power develop- 
ment might require the erection of a dam for storage purposes, in 
addition to the usual diversion works, conduits, water wheels, gen- 
erators, and distributing system, Several of the structures would 
necessarily be of concrete. For Logging, the improvements and 
equipment would depend on the methods employed. Scows, tugs, 
launches, pile drivers, and boom- would be essential. During tin' 
period required for the construction and equipment of a pulp and 
paper mill in Alaska there would of course be no revenue. 

OPERATING MATERIALS AND MILL SUPPLIES. 

In addition to fuel, the more important operating supplies for 
pulp mills in general are lime or limestone, sulphur, soda ash. salt 
cake, grindstones, bleaching agents, and repair materials. 

At present there are no operating Limekilns in southeastern Alaska ; 
one abandoned kiln in the Ketchikan district has been reported. 
A soda or a sulphate pulp mill could secure its lime by operat- 
ing a kiln of its own. and there are numerous known deposits of 
Limerock (marble) that would furnish high grades of lime (over 
99 per cent CaO basis). Dolomitic limestone, however, is unknown 
in this region. It may he present, but no deposits have yet been 
located. Hence a sulphite mill requiring dolomitic lime would have 
uvh for deposit- of suitable rock or else import it from the 

"outside" at a high co-t. By using the tt tower system " of " acid " 
manufacture, however, a sulphite mill can employ high-calcium Lime- 
stones, and British Columbia Sulphite mills use this system. Such 
limestone is abundant among the sedimentary locks of southeast 
Alaska. Belts of it miles in width arc exposed on tidewater and 



DEVELOPMENT OF PULPWOOD RESOURCES. 15 

the rock can be quarried at small cost. The known deposits in 
Alaska of the high-calcium marble also could be made to serve very 
well for the tower system, and an enterprise could count on a cost 
delivered at something less than $1.50 per ton, the prewar price. 
The high-calcium lime should cost delivered something less than $5 
per ton, the prewar price. 

For sulphur, mills would have to depend on Japan or, more 
probably, on the Louisiana and Texas deposits. The cost delivered 
has been estimated at $22 per ton, the prewar price. 

Soda ash and salt cake, delivered from San Francisco, cost about 
$27 and $17 per ton, respectively, the prewar prices. If electrolytic 
bleach were made, soda ash would be obtained as a by-product. 

Undoubtedly the bleaching materials, if any are required, can be 
supplied most cheaply by operating an electrolytic process plant. 
The cost of salt for this purpose, delivered from San Francisco, 
is about $3 to $3.50 per ton, the prewar price. 

Grinder stones would probably be shipped from the eastern United 
States or from England. With respect to Fourdrinier wires, ma- 
chine clothing, machinery repair parts, belting, etc., the same would 
be true. A much larger stock of supplies and repair materials would 
have to be kept on hand than in the States. Any mill in Alaska 
would require extensive carpenter, smith, and machine shops of its 
own and, very likely, a foundry ; otherwise, the only adequate shops 
and foundries to which the mill would have access would be those 
at Juneau or Prince Rupert. 

DISPOSAL OF MILL EFFLUENTS. 

As any mill in southeastern Alaska would be built on tidewater, 
and as the tidal variation is about 15 to 20 feet, there would be no 
difficulty in satisfactorily disposing of the effluents into the sea. On 
this account the mills of the region would have an advantage over 
the great majority of mills in the United States. Although no inter- 
ference is anticipated with the salmon industry, this possibility 
should be carefully considered. 

WATER SUPPLY. 

Pulp and paper mills require comparatively large quantities of 
pure water. The character of the water supply, like the availability 
of the water power, can be determined only for the individual 
project. The peaty discoloration and the characteristic glacial tur- 
bidity of streams that are occasionally found may be corrected by 
means of a filter if necessary. For the ordinary grades of news- 
print it might not be necessary to filter the water. 



16 r.n.i.F.Tix 960, r. s. department of agriculture. 

WATER POWER. 

The following extracts from an article by J. G. Hoyt. Geological 
Survey Bulletin 442. indicate the general water-power situation in 
southeastern Alaska : 

Owing to topography, the streams, with the exception of a few of the larger 
rivers which come througb the mountains from the interior, have small and 
precipitous drainage areas. Their courses are short and they have a large 
fall ; in fact many of the streams are made up of a series of cataracts. 

In the northern part of the area most of the streams head in the glaciers 
which cover a large portion of the country. In the lower southern part of the 
area many of the streams head in small lakes which occur a short distance 
hack from the shore line in the hanging valleys that are characteristic of this 
area. Most of the streams Bowing from these lakes are precipitous and many 
of them empty into the ocean with a cataract at the shore line. These lakes 
afford excellent opportunities for Storage, as the topography near them is such 
that a dam can usually he constructed for raising their water level. The most 

successful powers already developed depend on such storage daring a large 

part of the year, and further development in this region will depend on the 
availability of such lakes. 

The run-off from the streams in this area results principally from direct rain- 
fall, melting snow, and melting glaciers. In view of the large rainfall, tin' .\ 
cedent forest cover, and the glacial areas, the general deduction would he that 
this section Should have many large streams with an ahundant and well sus- 
tained run-off. This, however, is not the case, as the catchment areas are small 
ami, although the total yield per square mile is considerable, the streams are 
not large and they fluctuate very rapidly. 

The streams which head in lakes have a much better sustained How and are 
practically the only ones in the area which are of much value for power, as 
any large development must depend on storage, both for tin' winter months and 
during dry parts of the summer. 

The principal defect in the water BUPply, so far as the production id' power is 
concerned, is the extremely low How during the winter months, On the smaller 
streams, which have no Storage, there i- practically no How in winter, and even 
on the streams having lake storage the How is extremely low, as shown in the 

records tor Turner River, which empties into Taku inlet near Juneau. This 

stream has a drainage area of 08 Square miles and heads in Turner Lake, which 
offers excellent facilities for storage. A port ion of the area la also covered with 

glaciers. The scantiness of the winter How is due largely to the meager amount 

of storage capacity in the ground, which freezes to lied rock, thus holding hack 

the water. 

The wilder Mow i- particularly alight when freezing weather cornea 

before the heavy snowfall and in those inland locations at the head 
id inlets oi- passages where the ameliorating influence of the Japan 
Current is less effective. It ha- been estimated that on several Bites, 

no Storage being provided, the ratio of low winter (low (which 
involves two. three, or four months) to usual summer Mow is only 
about '-' to 5 per cent. On the other hand, it should he noted that 

the high How. period in Alaska coincides with the usual low Mow 

period in other locations which causes so many of the pulp mills 
to -hut down in the late summer. 



DEVELOPMENT OF PULP WOOD RESOURCES. 17 

In developing the timber resources it will be possible to produce cheap steam 
power by the use of sawmill waste as fuel. The ultimate development, how- 
ever, for both lumber and pulp will be through the establishment of mills at 
accessible power sites. 

A great drawback to water-power development in this region is the difficulty 
of transmission. The country, as already stated, is cut by numerous channels, 
has a rough topography, and is covered with dense forests. Therefore trans- 
mission lines are difficult and expensive to construct, and this practically pro- 
hibits development at sites where the power can not be utilized at the point 
of development. In view of these difficulties, the possibilities at the present 
time for large power development in southeastern Alaska are not great, and 
such projects should be closely scrutinized as to their feasibility both from 
an engineer's standpoint and from that of an investor. 

The opening of new mining districts and the development of the timber 
interests in this region will create a more widely distributed demand for power 
and enable the utilization of sites which at the present time can not be con- 
sidered as available. As already stated, the success of any large water-power 
development, to be run during the entire year, will depend on the possibility 
of an adequate storage. The meager topographic data available indicate that 
there are probably many lakes throughout the region which will offer excellent 
storage facilities. 

A number of power sites available for large-scale pulp and paper 
manufacture have been noted. In order to ascertain whether or 
not the powers on these sites will be fully satisfactory and how they 
can best be adapted, either alone or in conjunction with one another, 
definite surveys and other engineering investigations will be neces- 
sary, including stream-gauging through a period of years. 7 Of the 
specific powers noted, the more promising are those at Fish Creek, 
Shrimp Bay, Mill Creek, Warm Spring Bay, Speel River, Bailey 
Bay, Cascade Bay, Silver Bay, Swan Lake, Thomas Bay, Tease 
Lake, and Sweetheart Falls. The Warm Spring Bay, Mill Creek, 
and Speel River powers are known to receive glacial drainage and 
on this account are expected to be especially susceptible to tempera- 
ture changes and to haA T e wide extremes in summer and winter flow. 
This is known to be true of the Speel River powers, which have 
been gauged continuously throughout for several years. 

There is no assurance that the powers mentioned above will be the 
best ones obtainable in southeastern Alaska. The country is so new 
and unexplored that no one now knows just what specific power 
possibilities may eventually be located. There are numerous known 
streams whose power head and summer flow would probably be 
satisfactory, and some of them may possibly have ideal sites for 
storage reservoirs sufficiently large to insure a sustained winter flow 
of 10.000 horsepower at a comparatively small cost ; but until re- 

7 In the summer of 1915 the Forest Service established a number of stream-gauging 
stations in cooperation with the TL S. Geological Survey to ascertain the Alaskan power 
possibilities for pulp-manufacturing purposes. Twenty stream-gauging stations had been 
established in Alaska by 1017, and the records are being maintained. The data, includ- 
ing 1918, have been published as Bulletin 712— B of the Geological Survey. 

29729°— 21— 3 



18 BULLETIN <*30, U. S. DEPARTMENT OF AGRICULTURE. 

cently no one has been interested in such sites, and casual knowledge 
of the region is not sufficient to locate them. However, the Forest 
Service is now conducting general reconnaissance work, and all pros- 
pective power and reservoir sites are being noted as the region is 
systematically cruised and mapped In its administrative work 
also, efforts are continually being made to augment the existing in- 
formation on power possibilities of interest to pulp and paper manu- 
facturing enterprises. 

WATER-POWER PERMITS. 

The Federal water-power act (II. E. 3184) provides for the estab- 
lishment of the Federal Power Commission, with offices in Washing- 
ton, I). ('.. having authority to act in the administrative control 
of all power sites on the navigable waters and on the public lands 
and reservations of the United Slates, and over the location, design, 
construction, maintenance, and operation of power projects on such 
sites. Among the general duties assigned to the commission, the fol- 
lowing are of immediate interest to those who are contemplating 
water-power developments: To issue preliminary permits for power 
projects; to issue licenses for power projects and transmission lines 
on navigable waters, public lands, and reservations of the United 
Si ail's; fco prescribe rules for and to fix annual license charges; and 
to determine the relation of such charges to prices to consumers. 

The Federal water power act applies to National Forests and pro- 
vides a basis of charges as follows: 

That the licensee shall pay to the United States reasonable annual charges in 
an amount to be fixed by the commission for the purpose of reimbursing the 
United States for the costs of administration of this act; for recompensing it 

Tor the OSe, occupancy, and enjoyment of its lands or other property; and for 

the expropriation to the Government of excessive profits onto the respective 
states shall make provision for preventing excessive profits or tor the expropria- 
tion thereof to themselves or until the period of amortisation as herein proi Lded 
Is reached, and in fixing such charges the commission shall seek to avoid Increas- 
ing i he price to consumers of power by such charges. 

The passage of this ac( gives stimulus to water-power development 

which has been handicapped in the past, hugely on account of the un- 
lertainty of tenure under the old law. The legislation provides for 
the issuance at reasonable rates of term licenses, which will be irre- 
vocable except for \ Iolatiou of their terms. 

I>l VBXOPl !> WATK.lt row Kit IN ALASKA. 

Abort r> wafer power projects, developing a total of 87,350 horse- 
power, were reported in l!M7 for the region of southeastern Alaska. 
These plant- furnish power for mining and various other industry 
The largest plant in southeastern Alaska develops 5,700 horsepower. 



DEVELOPMENT OF PULPWOOD RESOURCES. 19 

FUEL. 

Fuel for steam power can be obtained from three main sources : 

(1) Wood waste from logging, pulp mill, wood room, and saw- 
mill operations. 

(2) Coal now delivered by colliers from the Vancouver Island 
mines and from the Alaska fields of coal and lignite when they have 
been developed. 

(3) Fuel oil delivered in tank steamers from the California fields. 

MARKETS. 

The leading market for pulp and paper from the Tongfiss National 
Forest will be the United States. Its transition in 10 years from the 
position of an exporter of newsprint to that of an importer, securing 
two thirds of its supply abroad subject to any restriction which it 
may be to the interest of the exporter to impose, will make it ad- 
vantageous to paper users to patronize the manufacturers of Alaskan 
pulpwood. The successful installation of pulp and paper plants in 
British Columbia after a number of trials has proved that the ex- 
ploitation of this general region is practicable. They represent a 
logical, progressive exploitation of known proportions. The condi- 
tions of acquirement of timber in British Columbia are no more 
advantageous than those in Alaska, nor are they likely to become so. 

In 1919 the pulp and paper mills of British Columbia produced 
120,000 tons of paper (mostly newsprint) and 170,000 tons of pulp 
(ground wood, sulphite, and sulphate). 8 Their principal markets 
are the Pacific coast States of the United States, the western Prov- 
inces of Canada, Japan, Australia, and New Zealand. 

The product of Alaskan mills will come into direct competition 
in markets now supplied by Canadian and American mills. By 
reason of the accessibility of timber to the Alaskan mills and favor- 
able operating conditions, this competition should be successfully 
met. Manufactures in British Columbia and Alaska have little 
to fear from each other and much to gain in the common develop- 
ment of the region. 

Norwegian paper was formerly shipped to Seattle and the west 
coast, South America, and the Orient. Because of the disadvantages 
they suffer as to fuel supply and raw materials European producers 
are likely to be supplanted in many markets by west coast mills. 

The largest potential market in the Orient for the Alaskan pro- 
ducer is China. The annual per capita consumption there is less 
than one-quarter of a pound. The per capita consumption of the 
United States is 33 pounds per annum of newsprint alone, or 100 

8 Pulp and Paper Magazine of Canada, Jan. 15, 1020. 



20 BULLETIN 950, U. S. DEPARTMENT OF AGRICULTURE. 

pounds per capita of all papers. If the market in China were de- 
veloped to one-tenth that of the United States the demand would 
be enormous. 

The unique advantages in the exploitation of Alaskan timber are 
the proximity of raw materials to tidewater and natural power sites 
and the favorable relation to the world's markets. Obviously, a 
paper plant located in southeastern Alaska has a world-wide choice 
of markets under independent transportation conditions, either rail 
or water transportation being available. 

TAXES. 

Outside of incorporated towns no general property taxes are im- 
posed, but all industries in Alaska, including those in incorporated 
towns, pay a Federal license fee which, where applicable, is based 
on actual yearly output. No license fees have been named to date 
on pulp and paper, but it is reasonable to suppose that this will be 
done when the industry becomes established. The fee on lumber is 
10 cents per thousand feet b. m. 

FREIGHT RATES. 

In the absence of cargoes for shipment, it is difficult to get firm 
quotations as to costs of transportation. Any rate quoted would 
probably be above a competitive rale which could be obtained on 
cargo shipments. In 1914 the rates were about $2 per marine ton 
(40 cubic feet) from points in the vicinity of Ketchikan to Portland 
and Seattle. The rate from Juneau and vicinity was about *:} per 
marine ton. These rates have more than doubled for the class of 

merchandise included in the classification. However, there is no 

reason why an enterprise with the tonnage of an ordinary-sized 
newsprint mill should not operate its own or chartered ships so that 
the above rates would be approximated under conditions similar to 
those of the present time, especially if the return cargo were charged 

with its share of the expense. 

In this connection it is interesting to note that the exports far 

exceed the imports of Alaska. The balance of trade, in favor of 

Alaska i- about $80,000,000 per annum. A result of this is, ,,f course. 
thai then iter demand for cargo space for outbound than in- 

bound traffic, and an explanation is afforded in a measure of the fact 

that coal is shipped int.. southeastern Alaska from Vancouver rather 
than from (he fields along the Government railroad terminating at 
ird. 

In 1917 the rates on dry pulp in hales from Seattle to the Orient 

were about $6.60 per 8,000-pound ton: on newsprint, st; t,, s;. On 
paper of any kin. I the rate to Anstralii were $6.60 to $8. These 



DEVELOPMENT OF PULPWOOD RESOURCES. 21 

rates have been increased since 1917. In 1915 the all-water rate 
quoted on general cargo from coast to coast was $8 per 2,000 pounds. 
In 1920 the Shipping Board quoted a rate of 90 cents per hundred 
from the Pacific to the Atlantic via the Panama Canal. This is 
$18 per ton. It is understood that the rail rate from Seattle to New 
York is about $24 per ton for newsprint. At the present prices for 
newsprint, this charge of one and a fraction cents per pound is not 
prohibitive ; and, in view of the shorter time required than for water 
transportation, it may be favorably considered. 

It is believed that shipping by rail from Prince Rupert will 
before long become a factor of importance. It is probable that 
pulp and paper shipments at very favorable rates via American- 
owned boats will be made in scow loads to Prince Rupert, and possi- 
bly by car ferry, to save handling and export packing. Prince 
Rupert also may in the future offer facilities for transshipment to 
coast and transocean ports. It has been estimated that shipment by 
scow from points in southeastern Alaska to Prince Rupert would 
cost 50 cents to $1 per ton. 

The following statement concerning transportation by the Grand 
Trunk Pacific Railway was furnished under date of July 7, 1920, 
by A. E. Rosevear, general freight agent of that railway, in response 
to an inquiry from the Forest Service : 

The present freight rates of wood palp, sulphite, or sulphate (wet or dry), in 
rolls or compressed in bales, carloads, from Prince Rupert, British Columbia, 
to Minneapolis, St. Paul, Minnesota Transfer, Duluth, and other similar east- 
ern United States terminals, is 56*. cents per 100 pounds ; to Chicago, 69 
cents ; and to New York, 92* cents ; minimum weight, 60,000 pounds per car. 
(Since the above was written a 35 per cent increase in freight rates has been 
made effective.) 

On news-print paper, carloads, also on wrapping paper (not printed) the 
present rates from Prince Rupert, British Columbia, are, to Minneapolis, St. 
Paul, Minnesota Transfer, Duluth, and other eastern United States terminals, 
as well as to Chicago and New York, $1.06* per 100 pounds; minimum 
weight, 40,000 pounds per car. 

The main line of the Grand Trunk Pacific Railway extends from Prince 
Rupert, British Columbia, to Winnipeg, Manitoba, distance, 1,748 miles. At 
Winnipeg it connects with the Great Northern Railway, Northern Pacific Rail- 
way, through the Midland Railway of Manitoba, also with the Canadian 
Pacific Railway in connection with their Soo line, as well as with the Canadian 
National Railways. 

The grades from Prince Rupert easterly through the mountains are four- 
tenths of 1 per cent, with the exception of 20.15 miles of 1 per cent grade, 
designed for operation as a pusher grade. In effect, therefore, the Grand 
Trunk Pacific Railway grade against eastbound traffic is virtually four-tenths 
of 1 per cent as against westbound traffic an actual four-tenths of 1 per cent. 

There is but one summit through the mountains of British Columbia, and this 
has an altitude of 3,724 feet above sea level. There are 7 short snow sheds 
and 11 short tunnels west of the Rockies on the way to Prince Rupert. Less 



22 BULLETIN 950, U. S. DEPARTMENT OF AGRICULTURE. 

snow is experienced on the line of the Grand Trunk Pacific Railway through 
the mountains- than on any oilier northern Pacific coast line, which includes the 
Chicago, Milwaukee & St Paul. Great Northern, Northern Pacific, and Cana- 
dian Pacific Railways. 

At Prince Rupert, British Colombia, the railway recently installed a car-ferry 
Blip dock, and a similar slip dock lias been installed at Swansea Pay, British 
Columbia, by the Whalen Pulp & Paper Co.. in order to cater to the loading 
and unloading of carload traffic at Swanson Bay, thus avoiding the expense 
and delay occasioned by steamer service and transfer of shipments at Prince 
Rupert from or into cars. The distance from Prince Rupert to Swanson Bay 
is 112 miles. 

The installation of a car-ferry slip dock at Ketchikan. Alaska, could, we 
understand, be easily accomplished, and navigation would be safe between thai 
point and Prince Rupert, British Columbia, a distance of 98 miles. The 
channel between Prince Rupert and Ketchikan is protected practically all the 
way by islands, which form a natural breakwater, thus insuring safe opera- 
tion of a car ferry; and the same remarks apply with equal tone to other 
points in southeastern Alaska, such as- Prince of Wales Island. WrangeU, 
Petersburg. Treadwell. Douglas, Juneau, Haines, and Skagway, Including inter- 
mediate points. 

In answer to your question as to whether a car-ferry service appeals to us 
as feasible under present conditions, we beg to reply in the affirmative, pro- 
vided Slip-dock facilities are installed and such industries located and in opera- 
tion as to make it an object to the railway to inaugurate the service. 

PROCEDURE IN GOVERNMENT TIMBER SALES. 

National Forest timber is examined and. if its sale is desirable, it is 
estimated and appraised by a forest officer. It is then advertised at 
a minimum stumpage rate or rate-, the highest bid (sealed) accom- 
panied by tin' required deposit from a responsible party is accepted. 
and the award is made on condition of the execution of a satisfactory 
contract and the delivery of a sufficient bond. Required deposits are 
made as cutting continues, and at stated intervals the timber is reap- 
praised and new rates fixed in accordance with the terms id' the con- 
tract. The local forest officer in charge scales or measures the tim- 
ber, requires the deposil of funds, and represents the Service in the 
en rorcement of the contract . 

The United states Forester is represented by the district forester 
and forest supervisors, who are in a position to explain in detail all 
the requirements as to organization, financial Bhowing, and conditions 
of Bale. 

1 1 should he understood thai timber is sold by the Foresl Service 

only for continuous operation, and that the general policy or form 
of contrail does nol permit the acquirement of timber on a Bpecula- 
tive basis. The Forest Service recognizes the difficulty in promoting 

an enterprise of the magnitude of a pulp or paper mill in Alaska, and 

gladly gives assistance and data to the extent of its resources, hut 
decline- t<> .nter into a sales contract before it is assured of the 



DEVELOPMENT OF PTJLPWOOD RESOURCES. 23 

financial ability of the applicants to operate according to the terms 
of the contract. 

The Forest Service sells stumpage only. The purchaser of timber 
has no cut-over land problem, for the Government retains title to 
the land. Any legitimate use of the land incident to the develop- 
ment of the project is allowed at a nominal consideration or free 
of charge. 

AUTHORITY TO SELL TIMBER. 

The act of June 4. 1897 (30 Stat., 11), authorizes the sale of 
timber on the National Forests. It also permits the export of any 
forest product from Alaska (see any agricultural appropriation bill, 
and the act of February 1, 1905 (33 Stat., 628). and this permission 
includes, of course, the export of pulpwood and wood pulp. The 
act of May 14, 1898 (30 Stat., 414) , prohibiting the export of timber 
from Alaska does not apply to National Forests. The fact that these 
two sections appear in the codified laws of Alaska as sections 226 
and 100, respectively, without any cross reference whatever, has 
confused many in their search for legal authority for the exporta- 
tion of timber, and on reading section 100 they have assumed such 
exportation was illegal. 

Timber can not be legally acquired under the mining law, nor is 
there any provision for purchases of timberland or concessions of 
timber. The disposition of the timber is. as has been indicated, 
on a competitive bidding basis by sealed bids. 

POLICY. 

The policy under which the Forest Service is now working, with 
respect to the development of Alaskan timber resources for pulp- 
wood, is as follows : 

(1) Firm contracts are offered for sufficient timber to supply a 
proposed paper mill for as much as 30 years; and, if additional 
timber is available, which may properly be reserved from other 
present disposition, the Service offers as one of its contract stipula- 
tions to reserve additional stumpage from sale up to a maximum of 
15 years' supply pending the completion of the first contract, and 
thereupon to appraise the reserved area and place it upon the market. 
The maximum amount of timber the Forest Service is prepared to 
award to one purchaser or group of interests is two billion feet board 
measure or its equivalent in cubic feet. 

(2) The contracts provide for the reappraisal of stumpage prices 
at intervals of five years after timber cutting begins, the first to be 
made seven years after the contract is signed if the full two-year 
period allowed for construction is used for that purpose; but, in 
addition to fixing the price for the first five years, a scale of prices is 
named which will in no event be exceeded in the reappraisal cover- 



24 BULLETIN 950, U. S. DEPARTMENT OF AGRICULTURE. 

in- t he second five-year period. The possible maximum prices for 
the second five-year period are ordinarily double the rates fixed for 
the initial period. The purpose of this provision is to fix a maximum 
liability for the cost of timber during the first 10 years of operation 
of the enterprise. After the first and most critical 10 years in the 
life of a new enterprise of this character, reappraisals are to be 
without this special limitation, but must be within the average cur- 
rent price obtained for corresponding timber in southeastern Alaska. 
(3) The reappraised rates in pulpwood contracts are based upon 
the current value of corresponding timber in southeastern Alaska, 
full recognition being given in reappraisal to the quality and accessi- 
bility of the timber included in the particular contract and to any 
other physical condition affecting the operations of the purchaser. 

STUMPAGE PRICES AND READJUSTMENTS. 

Minimum stumpage prices for each sale are on the basis of ap- 
praisals worked out under standard methods which are applied to 
each unit of timber before advertisement by the Forest Service. A 
trad of pulpwood has recently been advertised and sale awarded on 
the Tongass Forest near Port Snettisham at rates of si per thousand 
for spruce, cedar, and cypress, and 50 cents per thousand for hemlock 
and cottonwood. 

The stumpage prices in Alaska have varied recently from 50 cents 
to $3 per thousand feet, board measure, depending on the species, 
quality, and condition of the timber, its accessibility to tidewater, 
the cost of logging, etc. The appraisals are made on the basis of im- 
mediate operation, and provision is made, as hereafter explained, for 
reappraisal of timber under Long-term contracts. 

The sample contract, a copy of which is Included in this bulletin, 
provides for a readjustment of Stumpage prices after the first five 
years of operation following the two-year period of construction, and 
at five-year intervals thereafter dining the life of the sale. In addi- 
tion to fixing the price for the first five years, a scale of [trices is 
named which will in no event be exceeded in the reappraisal covering 
the second five-year period. The readjusted rates will in no event 

exceed tin- arithmetical average price received for stumpage in the 

National Forest sales during the preceding 1*2 months from the Na- 
tional Forests of Alaska. The reappraisals will be based, according 
to contractual obligations, on the price of logs of similar species in 
southeastern Alaska, on the current operating costs in southeastern 

Alaska, and on a reasonable margin for profit and risk in the liusiness 

of logging. 

The general principle of the redetermination of -!niiip;iL r i' pi 

during the life of Long-term timber sales has been in effect on all 



DEVELOPMENT OF PULPWOOD RESOURCES. 25 

National Forests for many years, but the interval between reap- 
praisal dates of saw timber sales in the States is usually three years. 
Pulpwoocl contracts in Alaska provide that these reappraisals shall 
be made by determining the current value of corresponding timber, 
due weight being given to the quality and accessibility of the stump- 
age and other physical factors in the particular operation. The re- 
appraisal plan has proved to be reasonable and fair both in prin- 
ciple and in application, as is evidenced by the fact that, while pro- 
vision is made for an appeal to the Secretary of Agriculture from the 
decision of the United States Forester in fixing reappraised stumpage 
rates, no appeal has as yet been received. The good faith of the 
Forest Service has never been questioned in its reappraisal work. 
It is as willing and able to satisfy operators for pulpwood in Alaska 
as it is to satisfy operators for saw logs, pulpwood, or other materials 
on the National Forests in Idaho or California. 

The principle of reappraisal at intervals during the life of a long- 
term contract for the purchase of timber from a National Forest is 
essential as a means of preventing speculation in Government prop- 
erty. Without it there would be at least an opportunity for a pur- 
chaser to have his chief interest not in a bona fide manufacturing en- 
terprise, but rather in the chances for disposing of his contract to his 
own pecuniary advantage. The effect of the establishment of such 
a speculative system would be disastrous so far as it concerns the 
actual development of such industries as the manufacture of pulp 
and paper in Alaska. Furthermore, wholly aside from the prin- 
ciple that the public is entitled to a fair return for its property, the 
intent of the law is that National Forest timber shall be sold at not 
less than its market value. It is the manifest duty of the Forest 
Service to secure such returns from long-term as well as short-term 
sales. 

In many respects this principle of reappraisal works to the ad- 
vantage rather than to the disadvantage of the purchaser. Under 
Forest Service timber-sale contracts a purchaser pays for timber in 
relatively small amounts prior to cutting. At no time during the 
life of the sale is it necessary for him to make a heavy investment in 
standing timber. In order to justify the establishment of a new 
pulp and paper mill, backed by privately owned timber, a heavy 
initial investment in timberlands would be necessary, and this 
investment would be steadily increased by interest charges, taxes, 
and protection costs. On the Pacific coast it is customary for tim- 
berland owners to consider that their investment in standing timber 
doubles every 8 or 10 years. This is a fixed charge which can not 
be avoided. A purchaser of National Forest stumpage, however, 
has no such inevitable increase in the cost of his raw material, for 
each reappraisal merely determines the actual current value of the 



20 BULLETIN 960, U. S. DEPARTMENT OF AGRICULTURE. 

stumpage. Money paid for stumpage is returned to the manufac- 
ture 1 in a few months, as he markets his product. The price fixed 
by these reappraisals may be more or may be less than the cost of 
similar private stumpage bought at the beginning of the sale and 
cariied to the same time, with the increases due to interest charges, 
taxes, and protection. The stumpage cost of privately owned timber 
Decessary as a backing for a pulp and paper null would increase at 
a constantly accelerating rate per unit of volume because of the com- 
pounding of interest. The influence of this factor is so strong as 
to make the purchase of National Forest stumpage. to be paid tor 
practically as cut and at its actual current value, preferable from a 
strictly business standpoint. In fact, this principle of reappraisal at 
intervals during the life of the contract has been accepted as reason- 
able and satisfactory by applicants who arc now negotiating with 
the Forest Service for pulpwood in Alaska. 

STUMPAGE PRICE READJUSTMENTS IN CANADA. 

The principle that the public is entitled to the price increment on 
the value of its property is recognized in the various forms of pulp 
licenses and sales in British Columbia, Ontario, Quebec, New Bruns- 
wick, and Nova Scotia. In each Province the timber acquired by 
individuals is subject to a "royalty." which is increased by "orders 
in council." This right to increase the royalty is equivalent to the 
right to readjust prices on stumpage in the Forest Service contracts. 
and is freely exercised in the Canadian Provinces wherever it is 
deemed necessary. In some Provinces the change is possible only 
at certain stated intervals. 

FINANCIAL STANDING OF PURCHASERS. 

The objects of the financial requirements are: (1) To secure as 
purchasers bona fide operators having adequate financial assets to 
carry out sale contracts successfully, and (*2) to eliminate speculators 
and promoters who risk no capital of their own, have little per- 
manent interest in the success of the enterprise, and Bees profits pri- 
marily from the formation of a new company or the manipulation 

Of its stock. 

These requirements will not be so enforced as to prevent legiti- 
mate promotion or the financing of National Forest sales in part 
with borrowed capital by responsible men in accordance with con 

Bervative business standards. Evidence as to financial standing will 
!•( required before advertised timber is finally awarded and tin- con- 
tract furnished to the successfu] bidder for execution. Informa- 
tion as to required assets will be given in response to inquiries at 
the time timber is being advertised, in order that the prospective 
bidder maj be informed as to the showing required. 



DEVELOPMENT OF PULPWOOD RESOURCES. 27 

AMOUNT OF CAPITAL REQUIRED. 

The production of pulp and paper is always in large units, on 
account of the extensive investment for the developments which 
must be made for power, manufacture, transportation, and other 
facilities. Roughly, the capital required for manufacturing a given 
amount of stumpage into paper is thirty to forty times greater than 
that for manufacturing it into lumber. In 1916 the cost of a pulp 
and paper plant was figured by the Forest Service at $25,000 per ton 
for a balanced ground-wood sulphite and paper plant producing 75 
tons per day. The same plant to-day would probably cost $4,000,000. 
The trade paper, Pulp and Paper Magazine, of Canada, for January 
15, 1920, cited two proposed developments. One requires a capital 
of $5,000,000 to build a plant covering 100 acres with an annual 
capacity of 75,000 tons of sulphite pulp and 35,000 tons of news- 
print. Twelve thousand horsepower are required. Another plant 
with a 200-ton daily capacity of sulphite pulp and a ground-wood 
mill with a daily capacity of 200 tons of newsprint calls for an 
outlay of $5,000,000 to $6,000,000. There is likely to be great diver- 
gence in costs of plants of similar capacity in Alaska, depending 
on the cost of power development and the inherent conditions of the 
site. 

The careful investigation of various sites by a competent engineer 
is necessary for the proper correlation of initial costs as against costs 
of operation. A prospective purchaser will, of course, make his own 
investigations of all essential features. One applicant is known to 
have spent more than twenty-five thousand dollars through several 
experts in investigations of pulp timber, water power, and general 
conditions before making formal applications for timber or water 
power. 

APPLICATIONS FOR TIMBER AND WATER POWER. 

There is no prescribed form of application for timber, and no 
priority is established by the filing of an application, for the award 
is based on the acceptance of the highest satisfactory bid. An appli- 
cation filed with the Forest Service furnishes a basis for the deter- 
mination as to whether the timber is for sale and, if the application 
is from responsible parties, for the examination and advertisement 
of the timber. Definite statements as to the requirements, plans, re- 
sources, and tentative organization of the applicant are very desirable 
as an aid to the Service in considering applications. Applications 
should preferably be made to the district forester, Forest Service, 
Ketchikan, Alaska (Juneau, Alaska, after July 1, 1921), although 
they may be made through the district forester, Forest Service, Port- 
land, Oreg., or the Forester, Forest Service, Washington, D. C. Ap- 
plications for water power should be made to the Federal Power 
Commission, Washington, D. C. 



28 BULLETIN 960, V. S. DEPARTMENT OF AGRICULTURE. 

TIME REQUIRED TO SECURE CONTRACT. 

No definite statement can be made as to the length of time required 
to consummate a pulp-wood contract. The timber will ordinarily be 
advertised for at least three months. Prior to advertisement, how- 
ever, the prospective purchaser must of necessity make Ins own ex- 
perl determination of the desirability and practicability of the proj- 
ect. I f the examiners will keep in touch with the local representatives 
of the Forest Service, it will usually be possible for the Service to gel 
the timber desired in shape for advertisement and sale by the time 
the examinations of the company are completed and the compam 
ready to proceed with the development. 

REFERENCES. 

For the convenience of those who desire references to the literature 
of the industry, the following suggestions are given: 

Bibliography of the Pulp ami Paper Industries, by Henry E. Sur- 
face. Forest Service Bulletin Xo. 123. This bulletin' gives a compre- 
hensive summary of the literature up to 191:5. with a list of pulp and 
paper trade papers, and is obtainable from the Superintendent of 
Documents, (iovernment Printing Office. Washington. I). ('. Price 
10 cents. 

The rules and regulations governing National Forests, together 
with the procedure in timber sales, special uses, and other activities 
of the Forest Service, are given in The Use Book, which may be 
had on application to the Forest Service. 

Alaskan conditions are well set forth in the annual reports of the 
governor of Alaska to the Secretary of the Interior. A list of 
references is given in these reports also t.. Government publication! 
on Alaska. 

Fists of manufacturers of pulp and paper mill machinery and 

supplies are given in Thomas's Directory of American Manufacturers, 

MAPS AND SURVEYS. 

It should bo understood that, although general statement- of IflCfl 
tion and stand of pulpwood are given to show the sufficiency of 
timber for regional development, the statements are not sufficiently 
detailed for the segregation of pulpwood stands into operative units. 
properly correlated to water power and other facilities, without an 
independent examination and determination on the part of the 
prospective purchaser. When he i- satisiied as to the opportunities 

the Forest Service will offer the timber for sale alter a rough icon 

nai88ance ha- hern made. 

The map attached ahoWB the best present i n format ion the Fore-t 

1 ice baa ae to the location of water power and desirable pulp 



Bui. 950, U. S. Dept. of Agriculture. 



Plate III. 




Fig. I.— Forest of Hemlock, Spruce, and Other Species near Ketchikan, 

Alaska. 




Fig. 2.— Logs Cut Under a Forest Service Timber-Sale Agreement and 
Held in a Boom Awaiting Towageto Mill, Whitewater Bay. Admiralty 
Island. 

TONGASS NATIONAL FOREST, ALASKA. 



Bui. 950. U. S. Dept. of Agriculture 



Plate IV. 




A Pair of Beauties Sitka Spruce. The Tree on the Left Measures 37 
Inches and the One on the Rioht 39 Inches in Diameter. 

Tim < li iy profltabl] booul Inl li lumbal Tta* cmallM 

timboi iii iin background oonl dn mucin valuable pulpwood m&Mrl d, 



DEVELOPMENT OF PULP WOOD RESOURCES. 29 

units. It has been the object to allocate roughly to each water power 
an amount of timber properly situated to keep it in operation con- 
tinuously. The Forest Service is not committed, however, to the 
sale of timber on the units as delineated. The map may serve as a 
guide for the examination of suitable locations, and no more. The 
Service has available on request maps of the Tongass Forest, drawn 
on a scale of 8 miles to the inch, which give more particulars and 
would be valuable in the detailed examination of pulpwood resources. 

The Service has had insufficient funds to conduct intensive surveys 
and stream-gauging work on the Tongass Forest on a satisfactory 
scale, but is pushing this work as rapidly as its resources permit. 

The coast line of Alaska is being charted by the United States Coast 
and Geodetic Survey. The charts produced are satisfactory for navi- 
gation. These maps furnish a basis for the survey of the interior, 
which has been partially mapped by the United States Geological 
Survey, the Land Office, and the Forest Service. The area indicated 
on the map as having been cruised does not comprise the entire area 
surveyed by the Service. Detached surveys are made in connection 
with numerous special uses, timber sales, homestead-land settlement, 
improvements, etc. However, the survey of an area of 20,000,000 
acres with a coast line of 12,000 miles is obviously a task which it 
will take years to advance to a point where reasonable demands for 
maps and estimates of timber can be satisfied. 

(Sample agreement.) 
United States Department of Agriculture. 

Forest Service. 
TIMBER-SALE AGREEMENT. 

DESCRIPTION OF TIMBER. Totals "(' p J^ 

CI i TT-r WOOd). 

Sec. 1. We, 

a corporation organized and existing under the laws of the State 

of , having an office 

and principal place of business at 

State of hereby agree Area and lo . 

to purchase an area of about cation. 

acres to be definitely designated on the ground by a Forest officer 
prior to cutting, on 

as definitely designated on the attached map which is hereby made 
a part of this agreement, within the Tongass National Forest, at the 
rate or rates, and in strict conformity with all and singular the 
requirements and conditions hereinafter set forth, all the dead 
timber standing or down and all the live timber marked or desig- 
nated for cutting by a Forest officer, merchantable as hereinafter 
defined, for pulpwood, saw logs, and for other forest products 



30 



BULLETIN 960. F. S. DEPARTMENT OF AGRICULTURE. 



Amount. 



Initial rates. 



Kmpprnisils. 



customarily produced in Alaska. The estimated amount to be out 
under the provisions of sections 7 and 8 is 

cubic feet of Sitka spruce, 

hemlock, and other species, approximately per 

cent Sitka spruce and per cent hemlock. 

Pror-i<le<l, That in designating the area to be cut and the areas 
to be reserved from sale as specified in section I'lh) herein, units. 
bearing timber suitable for local use may be excluded to a total 

amount not exceeding cubic feet 

or equivalent amount in other units of measure if, in the judgment 
of the forest supervisor, the operation of the purchaser is not in- 
terfered with thereby. 

Provided further. That the purchaser shall establish in Alaska, 

not later than , a pulp mannfac- 

(Date) 
turinjr plant or plants with a daily capacity of not less than 

tons, which daily capacity shall 

be Increased, not later than to a 

(Date) 

total of at least tons. Failure 

Of the purchaser to make the tirst installation by the date titst 
above specified shall render this agreement subject to cancella- 
tion in the disCretJ >f the Forester: and failure to increase the 

daily capacity of the plant or plants by the second date above 
specified will render this agreement subject to such a reduction 
in area and volume of Umber as will be, in the judgment of the 
Forester, commensurate with the manufacturing capacity estab- 
lished. 

PAYMENTS. 

SCC. 2 km We de hereby, in consideration of the sale of this 
timber to us, promise to pay to the First National Bank of .luneau, 
Alaska (United states depository), or such other depository or 
officer as shall hereafter be designated, t" be placed t<> the credit 

of the United Slates, tor the timber at the following rates: 

For all timber cut prior to April 1. 1028, at the following rates: 

$ iHT LOO cubic feet for 

Sitka spruce and Alaska cedar, and 

$ iht UKt cubic feet for 

hemlock and other species. 

For all timber cut on or after April 1, 1928, and prior to April 
1. 1938, at such rates as shall he designated by the Forester within 
thirty days preceding April 1. L928; 

For nil timber cut on or after April 1. 1988, and prior to April 
1. L988, at BUCh rates as shall he designated bj the Forester within 

thlrtj days preceding April l. 18 

For all timber cut on or after April 1. 1988, and prior to April 
1. 1948, at SUCfa rates ns shall be designated by the Forester within 

thlrtj days preceding April l. L988; 

For all timber cut on or alter April 1. 1948, and prior to April 

i 1948, ai such rates a- shall be designated bj the Forester within 
thlrtj days preceding April l. L948; 

And for all timber cut on or alter April 1. 1948, al such rates 

a- '■hail I..- designated bj the Forester within thirty day- pi 

iiiL- that date. 



DEVELOPMENT OF PULPWOOD RESOURCES. 31 

Except as hereinafter provided, material below merchantable 
size under the terms of this agreement which is cut and removed 
at the option of the purchaser shall be paid for at the rates then 
in effect for merchantable material. Material unmerchantable on 
account of defects may be removed without charge in the discre- 
tion of the district forester. 

(0) The Forester shall reappraise and within thirty days 
before each of the foregoing dates designate the value of each 
species in consideration of current operating conditions and 
markets in southeastern Alaska, including the operation of the 
purchaser, such reappraisals to include the timber on the entire 
tract, and to be based upon an equitable margin for profit and 
risk to the purchaser under the operating conditions prevailing 
throughout the region : Pro bided, That the stumpage price for 
any species fixed upon any reappraisal date shall not exceed the 
arithmetical average of the prices received for National Forest 
stumpage of that species in southeastern Alaska during the 
twelve months preceding the date of reappraisal, as shown by sale 
contracts executed during that period ; and 

Provided further, That in no event shall the stumpage price 
for any species established by the Forester to apply during the 
period from April 1, 1928. to April 1, 1933, exceed double the 
initial rate for that species as stated above. 

(c) If any material cut under this agreement and merchant- 
able under its terms is manufactured or sold by the purchaser 
for other uses than pulp or its products, the Forester may upon 
the next reapparisal date establish a special stumpage rate for 
each class of material so manufactured or sold during the suc- 
ceeding period, which rate, in accordance with the ratio per one 
hundred cubic feet currently used by the Forest Service, shall 
be not less than the initial stumpage price fixed herein and shall 
allow the purchaser an equitable margin for profit and risk under 
current selling prices and costs of production in the region defined 
above. 

(rf) It is further agreed that the Secretary of Agriculture will, 
upon written application from the purchaser showing good and 
sufficient reasons therefor and specifically the existence of a seri- 
ous emergency arising from changes in market conditions since 
the last reappraisal, at his option, when action of either charac- 
ter is necessary to relieve the purchaser from hardship, either — 

(1) Redetermine and establish the stumpage rates and desig- 
nate a date when the rates as redetermined shall be effective, 
which date shall be within six (6) months of the date of appli- 
cation, or 

(2) Grant an extension of time within which the respective 
amounts of timber specified in section 4 shall be removed, not to 
exceed the total period allowed for cutting all the timber. 

Any stumpage rates redetermined upon application to the Sec- 
retary shall be determined in accordance with the methods and 
under the terms above set forth, and shall apply only during the 
remainder of the five-year period then current, when the rates 
shall be regularly designated after reappraisal. 



32 Bl I.U.TIX 960, l . S. DEPARTMENT OF AGRICULTURE. 

(c ) In no event, however, shall the stumpage rates [or products 
from material whose Utilization is required by this agreement as 
established upon any dale above named, or upon application from 
the purchaser, be less than those specified herein to he paid for 
timber cut prior to April 1. 1!»28. 

if) It is further agreed that at the date of any reappraisal of 
stumpage prices the forester may require such modifications in 
the sections numbered 7, S, 13, 15. Hi. 17, 18, 10, 21, 22. 23, and 24 
in this agreement as are necessary, in his Judgment, to protect the 
interests of the United States. Such modifications shall he limited 
to requirements contained in the then current timber sale con- 
tracts in southeastern Alaska and shall be practicable under the 
existing equipment and organization of the purchaser. Any addi- 
tional operating costs entailed by such modifications, as ascer- 
tained bj the Forester, shall be taken into consideration as a fac- 
tor in reappraisals. 

(g) Payments shall he made in advance installments of not less 
than ten thousand dollars ($10,000) and not more than twenty 
thousand dollars ($20,000) each when called for by the Forest 
Officer in charge, except just before the completion of the sale or a 
period when cutting operations are to be suspended for at least 
three (3) months, when the amount of the payment shall be desig- 
nated in writing by the Forest supervisor, credit being given for 

the sums, if any, heretofore deposited with the said United States 
depository or officer in connection with the sali 1 . 

( //) It is further agreed that an area or areas of timber Located 
on the Tongass National Forest located 

which areas are considered by 'he 

district forester to lie accessible to the manufacturing plant of 
the purchaser, Shall be later selected and cruised by the 1'orest 
Service. These areas shall, except ill case of serious deterioration 
from tire, insects, or similar causes, be reserved from sale by the 

United states until six months prior to the completion of cutting 

on the area covered b\ this agreement, but in no event later than 
October 1, L952, and it is agreed that at a date BO determined 

the timber on the areas to be selected, together with any timber 
included in this agreement which in the Judgment of the district 

forester will be uncut on March .".i>. L95S, shall be appraised and 
advertised for purchase under sealed bids, at such minimum prices 
and under such conditions and requirements as the forester shall 

deem necessary: Provided, that the total amount of timber In- 
cluded under tiiis agreement and on the areas to be selected shall 

approximate but not exceed cubic feet. 

which amount is not guaranteed by the United states. 

il BIOS oi CONT&AI I. 

c-iittini? period Si (..",. The Cutting and removal of timber under this agreement 
-hall begin not later than April 1. 1028, and unless extension ,,f 

time is granted all timber shall be cut and removed and the re 
qulrements of this agreement satisfied on or before March B0, 
10SS. 

su. i. Unless -neb amount- are reduced In writing by the <in 
trict forester :it least cubic feet 



DEVELOPMENT OF PULPWOOD RESOURCES. 33 

shall be cut prior to April 1, 1928; at least 

cubic feet shall be cut prior to April 1. 1933; at least 

cubic feet shall be cut prior to 

April 1, 1938; at least cubic feet 

shall be cut prior to April 1, 1943; and at least 

cubic feet shall be cut prior to April 1, 1948. 

TITLE. 

Sec. 5. The title to all timber included in this agreement shall Title to tim- 

ber. 

remain in the United States until it has been paid for. and scaled, 
measured, or counted as herein provided. 

Sec. 6. Timber upon valid claims and all timber to which there Timber on 
exists valid claim under contract with the Forest Service is ex- claims, 
empted from this sale. 

designation. 

Sec. 7. Timber shall be designated for cutting as follows : The Timber re- 
exterior boundaries of the sale area shall be marked and all seed ?^ ve(1 '" mark " 
trees and groups of seed trees and areas considered unmerchant- 
able or inaccessible in the judgment of the Forest officer in charge 
within these boundaries shall be plainly marked or posted. All 
other timber shall be considered as designated for cutting. 
Groups of trees or single trees may be reserved for seed wherever 
it may be deemed necessary by the Forest officer in charge : Pro- 
vided, That not more than five per cent (5%) of the mechantable 
volume on the sale area shall be so reserved. All other merchant- 
able timber shall be cut. 

Sec 8. The approximate minimum diameter limits outside bark Minimum di- 
at a point 4$ feet from the ground to which timber shall be desig- ameter limits. 
nated for cutting under the terms of this agreement are fourteen 
(14) inches for Alaska cedar and eight (8) inches for all other 
species. 

LOGGING. 

Sec 9. As far as may be deemed necessary for the protection of 

national forest interests, the plan of logging operations on the 

pian of log- 
respective portions of the sale area shall be approved by the ging operations. 

Forest officer in charge. When operations are begun on any natural 

logging area, the cutting on that area shall be fully completed to 

the satisfaction of the Forest officer in charge before cutting may 

begin on other areas, unless such cutting is authorized in writing 

with the requirement that cutting shall be completed on the area 

left unfinished as soon as practicable. After decision in writing Acceptance of 

by the Forest officer in charge that the purchaser has complied cut-over areas. 

satisfactorily with the contract requirements as to specified areas, 

the purchaser shall not be required to do additional work on 

such areas. 

Sec 10. All and only designated live trees shall be cut. No No cutting be- 
timber shall be cut until paid for, nor removed from the place or tore payment. 
places agreed upon for scaling until scaled, measured, or counted 
by a Forest officer. 

Sec. 11. No unnecessary damage snail oe done to young growth Damage to 
or to trees left standing, and no trees shall be left lodged in (he young e ,owth - 



34 BULLETIN 960, U. S. DEPARTMENT OF AGRICULTURE. 

process of felling. Undesignated trees which are badly damaged 
in logging shall be cut if required by the Forest officer in charge. 
cudennL and Sht ' 12 ' Undesignated live trees which are cut, or injured 
waste. through carelessness, and designated trees left uncut on areas on 

which lugging has been completed shall be paid for at double the 
current price for the class of material which they contain fixed in 
accordance with the terms of this agreement. Timber wasted in 
tops or stumps, designated timber broken by careless felling, and 
any timber merchantable, acording to the terms of this agree- 
ment, which is cut and not removed from any ]M»rtiou of the cut- 
ting area when operations on such portion are completed, or he 
fore this agreement expires or is otherwise terminated, shall be 
paid lor at the current price for such material. The amounts 
herein specified shall he regarded as liquidated damage and may 
be waived in the discretion of the Forest officer in charge in acci- 
dental or exceptional cases which involve small amounts of mate- 
rial. Any timber remaining on the sale area at the expiration or 
termination of this agreement, for which payment as specified in 
this section lias heen made to the United States, may he removed 
within six months from such date of expiration. 

S«C. 13. All cutting shall be done with a saw when practicable; 
stumps shall he cut so as to cause the least practicable waste and 
inftop S 1 "" higher than eighteen (IS) inches on the side adjacent to the 
ter. highest ground for all trees with a diameter of twenty-four C24) 

inches anil under at a point 4* feet from the ground, and not 
higher than twenty-four (24) inches on the side adjacent to the 
highest ground for all trees with a diameter o\er twenty-four 
(24) inches at the point described, except in unusual cases when 
in tin- discretion of the forest officer in charge this height is not 
considered practicable; all trees shall be Utilised to as low a 
diameter in the tops as practicable and to a minimum diameter of 
ten lid) inches for Alaska cedar ami six (6) inches for all other 
Species when merchantable in the judgment of the Foresi officer in 

charge. The log lengths shall he varied so as to secure the great 

est possible utilization of merchantable material. 

Wood used as g BC _ ^j Wood taken from tops or unmerchantable timber for 
fuel. 

use as fuel in connection with logging operations shall be allowed 

free of charge. 

scai i \<; \M> Ml la ll an I villi in. 
'"""'■ SIC. 1.".. Mat. •rial shall be piled, rafted, or skidded for scaling, 

measurement, or count if required by the EToresf officer in charge 

and in such manner as hi' shall direct. Logs will he measured 

in cubic feet on the basis of the length and the average middle 

diameter inside the hark taken to the nearest inch, or, it' it is 
Impracticable to secure the average middle diameter, on the basis 
■ if the length and the average of the diameters Inside hark at 
the two ends of the log, each measured to the Dearest inch. 

Sb hi. if an> pulpwood is cut in the form of cordwood In- 
stead of iii logs, it shall he measured in cords of 128 cubic feet 

of slacked w 1, and the number of cords converted into cubic 

feet at the ratio of one cord equaling 1< HI CUblC feel unless or 



DEVELOPMENT OF PULPWOOD RESOURCES. 35 

until, as the result of actual measurements, the district forester 
and the purchaser shall have agreed on the use of some other 
ratio. Such material shall be piled for measuriuent as the Forest 
officer in charge shall direct. 

Sec. 17. In obtaining the cubic contents of logs the maximum Scaling length, 
measuring length may in the discretion of the district forester 
be thirty-two feet; greater lengths may be measured as two or 
more logs. 

Sec. 18. Any tree which in the judgment of the Forest o ffi ce r TOe D r ^^°t ab fJ 
contains one or more logs merchantable as defined in section 19. tree. 
and having a net total merchantable volume of 25 per cent or 
more of the total volume of the tree, shall be considered mer- 
chantable under the terms of this agreement. 

Sec. 19. All spruce logs are merchantable under the terms of <]e i n ^ d hantabiIity 
this agreement which are not less than 16 feet long, at least 
inches in diameter inside bark at the small end, and after deduc- 
tions for visible indications of defect are estimated to contain 
33J per cent sound material; all Alaska cedar logs are merchant- 
able under the terms of this agreement which are not less than 
16 feet long, at least 10 inches in diameter inside bark at the 
small end, and after deductions for visible indications of defect 
are estimated to contain 33J per cent sound material; and all 
logs of hemlock and other species are merchantable under the 
terms of this agreement which are not less than 16 feet long, 
at least 6 inches in diameter inside bark at the small end, and 
after deductions for visible indications of defect are estimated to 
contain 50 per cent sound material: Provided, That the 33^ per 
cent aforesaid in spruce and Alaska cedar logs and the 50 per 
cent aforesaid in hemlock and other species shall be so located in 
the log as to permit the use of the sound material for pulp manu- 
facture under the pulp manufacturing methods used in efficiently 
conducted pulp operations in Alaska. 

Sec. 20. On request, copies or abstracts of the scale reports s<aIe reports, 
will be furnished to the purchaser after they have been approved 
by the forest supervisor. 

BRUSH DISPOSAL. 

Sec 21. The district forester may require that all tops shall be ^,! sposal of 
lopped and all brush scattered so as to lie close to the ground 
and away from standing trees and reproduction, or any other 
method of disposal the cost of which shall not be in excess of 
this method. 

FUSE PROTECTION. 

Sec. 22. During the time that this agreement remains in force 
the purchaser shall independently do all in his power to prevent 
and suppress forest fires on the sale area and in its vicinity, and 
shall require his employees, contractors, and employees of con- 
tractors to do likewise. Unless prevented by circumstances over 
which he has no control, the purchaser shall place his employees, 
contractors, and employees of contractors at the disposal of any Assistance in 
authorized Forest officer for the purpose of fighting forest fires, fighting fires. 
with the understanding that unless the fire-fighting services are 



36 BULLETIN 960, U. S. DEPARTMENT OF AGRICUT/ITRE. 

rendered on the area embraced in this agreement or on adjacent 
areas within one mile, payment for such services shall be made 
at rates to he determined by the Forest officer in charge, which 
rates shall be not less than the current rates of pay prevailing in 
the said National Forest tor services of a similar character: Pro- 
vided, That the maximum expenditure for fire fighting without 
remuneration in any one calendar year, at rates of pay deter- 
mined as above, shall not exceed $10,000, Including the famishing 
of special trains or other special service as required; and farther 
provided that if the purchaser, his employees, contractors, or em- 
ployees of contractors are directly or indirectly responsible for the 
origin of the fire, no payment shall be made for services 90 ren- 
dered, nor shall the cost of such services be included in determin- 
ing said maximum expenditure for any calendar year. 

It is further agreed that except In serious emergencies as de- 
termined by the Forest supervisor the purchaser shall not he re- 
quired to furnish more than 100 men for fighting tire outside of tin- 
area above specified, and that any employees furnished shall he 
relieved from fire fighting on such outside areas as soon as it is 
practicable for the Forest supervisor to obtain other labor adequate 
for the protection of the National Forest. 

Sec. 23. If required by the Forest supervisor in writing, all 
donkey engines or other steam-power engines shall, during the 
period from June 1 to October 1 ■if each year, burn oil. or shall be 
^spark arrest- eq U jpp e( ] with spark arresters acceptable to the Forest officer in 
charge, six (G) 12-quart pails, six (6) shovels, and a constant 
supply of not less than the equivalent of twelve (12) barrels of 
imnt'. r ' equlp " water, this equipment to be suitable for fire-fighting purposes, and 
kept in serviceable condition. 

Sue, 24. During the period from June 1 to October 1 of each 
,.,."„" r " ' ag of year, no refuse, brush, slash, or debris shall be burned without 
the written consent of the Forest officer in charge. 

Rkc 2.". Officers of the Forest Service, fire fighters, and other 

[{JJ^JSliJSU regular and temporary employees shall be transported free of 

Charge over logging roads operated in connection with this sale 

not common curriers, ami shall be permitted to ride upon losing 

trains and engines op to operate speeders when traveling upon 
official business. i'eie-t o ffi cers and other employees riding on 
logging trains, engines, or speeders shall do so at their own risk, 

and the owner of the railroad expressly reserves the right to enter 
into an agreement with such persona before entering upon said 

trains or engines, or before operating a speeder, releasing the said 

owner from liability for any injury sustained by them in riding on 
Bald trains, engines, or speeders, arising from an} cause whatso 

ever. In emergencies arising from forest lires, special trains 
Khali be furnished to Officers and employees of the Forest Service 

OCCUFANt 1 

'"•'• '"'• Kfc 20. The purchaser is authorised to build on National Por 
est land, sawmills, camps, railroads, roads, and ether Improve- 
ments essary In the logging or the manufacturing of the tim 

ber Included in this agreemnt: Provided, That all such structures 



DEVELOPMENT OF PULPWOOD RESOURCES. 37 

and improvements shall be located and operated subject to such 
regulation by the Forest officer in charge as may be necessary for 
the protection of National Forest interests. The continuance or 
operation of such improvements on National Forest land after this 
agreement has terminated shall be subject to authorization by 
permit or easement under United States laws, and unless such 
authorization is secured all improvements not removed shall be- 
come the property of the United States at the expiration of six 
months from the termination of this agreement. 

Sec. 27. All merchantable timber used in the construction of Construction 

timber. 

buildings, roads, and other structures, necessary in connection 
with the cutting and removal of the timber covered by this agree- 
ment, shall be paid for at the current rates for such material 
under this agreement. Cull material and unmerchantable tops of 
any species may be used for such purposes without charge and 
shall be left in place where used. 

Sec 28. Logging camps, mills, stables, and other structures, and Sanitation of 
the ground in their vicinity, shall be kept in a clean, sanitary camps- 
condition, and rubbish shall be removed and burned or buried. 
When camps or other establishments are moved from one location 
to another or abandoned, all debris shall be burned or otherwise 
disposed of as the Forest officer in charge shall direct. 

MISCELLANEOUS. 

Sec 29. At all times when logging operations are in progress Representative 

of Durcli3. < 'Gr 

the purchaser shall have at tbe main camp for his employees 
working on the sale area a representative who shall be author- 
ized to receive, on behalf of the purchaser, any or all notices 
and instructions in regard to work under this agreement given by 
the Forest officer in charge, and to take such action thereon as 
is required by the terms of this agreement. 

Sec 30. Complaints by the purchaser arising from any action Complaints by 

mi i f* nft RPT 

taken by a Forest officer under the terms of this agreement shall 
not be considered unless made in writing to the Forest supervisor 
having jurisdiction within thirty (30) days of the alleged unsat- 
isfactory action. The decision of the Secretary of Agriculture 
shall be final in the interpretation of the regulations and pro- 
visions governing the sale, cutting, and removal of the timber cov- 
ered by this agreement. 

Sec 31. All operations on the sale area, including the removal Suspension of 
of scaled timber, may be suspended by the district forester, in °P eratlons - 
writing, if the conditions and requirements contained in this 
agreement are disregarded, and failure to comply with any one of 
said conditions and requirements, if persisted in, shall be suffi- 
cient cause for the termination of this agreement : Provided, 
That the district forester may, upon reconsideration of the con- 
ditions existing at the date of sale and in accordance with which 
the terms of this agreement were fixed, and with the consent of 
the purchaser, terminate this agreement, but in the event of such 
termination the purchaser shall be liable for any damages sus- 
tained by the United States arising from the purchaser's opera- 
tions hereunder. 



38 BULLETIN 960, V. S. DEPARTMENT OF AGRICULTURE. 

inspection ol Sec. 32. AH the books pertaining to the purchaser's logging 

books. 

operation and nulling business sluili be open to Inspection at any 
time by a Fon-st officer authorized l>y the district forester to 
make such Inspection, with the understanding that the information 
obtained shall be regarded as confidential. 

" Forest officer." SEC. 88. The lerni "officer in charge" wherever used in this 
agreement signifies the officer of the Forest Service who shall be 
designated by the proper supervisor or by the district forester 
to supervise the timber operations in this sale. 

4 ^909° f Marth Sec.34. No Member or Delegate to Congress, or Resident Com- 
missioner, after his election or appointment, and cither before or 
after he has qualified, and during his continuance in office, shall 
be admitted to any share or part of this contract or agreement, 
or to any benefit to arise thereupon. Nothing, however, herein 
contained shall be construed to extend to any incorporated com- 
pany, where such contract or agreement is made for the general 
benefit of such incorporation or company. (Section 3741, Re- 
vised Statutes, and sections 114-1 Hi. Ad of March 1. 1909.) 

Contract non- Sec. 3">. This agreement shall not be assigned in whole or in 
able. 

part. 

Authority to SEC. 36. The conditions of the sale are completely set forth in 

in o (I i f y agree- 
ment, this agreement, and none of its terms can ho varied or modified 

except in writing by the Forest officer approving the agreement, 

or his successor or superior officer, and in accordance with the 

regulations of the Secretary of Agriculture. No other Forest 

officer has been or will be given authority for this purpose. 

Sec. 37. And as a further guarantee of a faithful performance 

of the conditions of this agreement we deliver herewith a bond iii 

the sum of Fifty Thousand Dollars ($50,000.00), and do further 
agree that all moneys paid under this agreement shall, upon failure 
on our part to Fulfill all and singular the conditions and require 
ments herein set forth, or made a part hereof, be retained b\ the 
United States to be applied as far as max be to the satisfaction of 
our obligations assumed hereunder. We do further agree that 
should the sureties on the bond delivered herewith or on any bond 
delivered hereafter In connection with this sale become unsatis- 
factory to the officer approving this agreement, we will within 

thirty (30) days of receipt Of demand furnish a new bond with 

sureties solvent and satisfactory to the approving officer, 

Signed in duplicate this day of . 102 

[OOBPOB \ 1 1 -i a i I 

By 



[t 
Witnesses : 



Approved at Washington, i>. «'., under the above conditions, 
.... . 102 . 



/'<,/, st( r. 



DEVELOPMENT OF PULP WOOD RESOURCES. 39 

Index to units, names of power sites, and approximate capacities. 



Unit. 



Name. 



Possible 
horse- 
power. 



Thorne Arm 

Carrol Inlet 

Ketchikan Region . . 

do 

Shrimp Bay 

do 

Mill Creek 

Karta Bay 

Sulzer 

Thomas Bay 

Sweetheart Falls 

Speel River 

do 

do 

do 

Juneau 

.....do 

do 

Mitchell Bay 

Warm Springs Bay. 

do 

Silver Bay 

Neutral 

do 

do 



Fish Creek 

Swan Lake 

Beaver Falls 

Naha Creek 

Shrimp Bay 

Bailey Bay 

Mill Creek 

Karta River 

Coppermount 

Thomas Bay. 

Sweetheart Falls . . . 

Speel River 

Long Lake 

Crater Lake 

Tease Lake 

TreadweU 

Alaska-Gastineau . . 

Cowie Creek 

Mitchell Bay 

Warm Springs Bay 

Cascade Bay 

Silver Bay 

Basket Bay 

Gut Bay 

Patterson Bay 



10,000 
9,000 
5,000 
5,000 
7,000 
6,000 
4,000 
4,000 
4,000 
15,000 
15,000 
20,000 

10,000 

5,000 
1 10,000 
1 12,000 
2,000 
10,000 
5,000 
5,000 
C>,000 
2,000 
2,000 
5,000 



Developed. 






40 



BULLETIN 960, V. s. DEPARTMENT OF AGRICULTURE. 




(A90UT IS MILES • I iNCm) 
_ NATIONAL rORLST DOUNOARy 
ARLA SOLO 
AREA CRUISED 

tsa arca nciNo cnuisco 

OOUMOARV 
f ARLA3 OF OUST TtMfU R 
HVDRO-Ct-CCTRlCRX)Wf R 3iTt 
AND M m F •(a)«0OOO H R. 






o 



LIBRARY OF CONGRESS 



018 374 059 3 




